BRUSSELS (dpa-AFX) - French stocks fell sharply Monday morning as rising geopolitical tensions and announcement of more more tariffs on several EU nations by the Trump administration rendered the mood bearish.
Meanwhile, the country moved closer to a budget agreement after Prime Minister Sebastien Lecomu made some concessions to secure socialist backing.
U.S. President Donald Trump has doubled down on his plan to acquire Greenland, saying NATO had warned Denmark for years about the 'Russian threat' to Greenland and claimed Copenhagen had failed to act.
'Now it is time, and it will be done!!!' Trump wrote in a post on his Truth Social platform ahead of this week's World Economic Forum Annual Meeting in Davos.
The U.S. President's announcement of a 10% tariff on several EU countries from next month, which raises the tariff on all imports to US to 25%, and reports that EU is consideriang retaliatory move against the U.S. weighed on stocks.
The EU is reported to be considering tariffs of 93 billion euros of US goods or restricting US firms' access to its internal market.
The benchmark CAC 40 was down 127.00 points or 1.54% at 8,131.94 a few minutes ago.
STMicroElectronics, down 4.3%, was the biggest loser in the CAC 40 index. LVMH slipped nearly 4% and Hermes International lost about 3.1%.
Kering, Hermes International, Dassault Systemes, Renault, Capgemini and Saint Gobain lost 2 to 2.7%. Pernod Ricard and Schneider Electric declined nearly 2%.
Legrand, Michelin, Stellantis, BNP Paribas, Sanofi, TotalEnergies, AXA, Unibail Rodamco and EssilorLuxottica also suffered notable losses.
Among the gainers, Thales climbed more than 3% after reaffirming its 2025 earnings outlook. Orange advanced by 2.3%. Euronext, Safran and Carrefour gained 0.4 to 0.8%
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